AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz
in Victoria, under the Electricity Industry Act 2000; in Queensland, under the Electricity Act 1994; and in Western Australia, under the Electricity Industry Act 2004 (WA). Similar frameworks apply in South Aus- tralia, Tasmania and the Northern Territory. State planning laws govern the construction of dis- tribution infrastructure such as zone substations, switching stations and major feeder lines. Routine net- work augmentation (pole replacements, line upgrades) typically proceeds under existing licences and exemp- tions from full planning assessment, while significant new infrastructure such as zone substations requires development approval from local government or, for larger projects, state planning authorities. Storage and microgrids are increasingly integrated into distribution networks. The AEMC has progressed rule changes to accommodate stand-alone power systems, enabling DNSPs to offer off-grid solutions as an alternative to traditional network extension where this represents the most efficient investment. Regula- tory sandbox trials have also tested new models for community batteries and microgrid operation within distribution networks. The regulatory process for distribution infrastructure is generally less complex than for transmission, reflect- ing the smaller scale and more localised nature of most distribution projects. For standard network augmentation and maintenance, DNSPs typically operate under standing approvals or exemptions within their licence conditions. New zone substations or major infrastructure projects require development approval under state planning legisla- tion, usually assessed by local government. Where a project exceeds specified thresholds or is located in a sensitive area, it may be elevated to a state-level assessment pathway. Public participation is required for significant distri- bution projects, though the process is typically less formal than for major transmission lines. Exhibition periods and community consultation are standard for 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities
new substations, with submissions considered by the decision-maker prior to determination. The EPBC Act applies where distribution projects may impact matters of national environmental significance, though this is less commonly triggered for distribu- tion than for transmission given the typically smaller footprint. The AER administers the Regulatory Investment Test for Distribution (RIT-D) for network investments exceeding $6 million. The RIT-D requires the DNSP to demonstrate that a proposed investment maximises net market benefits compared to credible alternatives, including non-network options such as demand man- agement, distributed generation or battery storage. Typical timelines for distribution approvals vary con- siderably by project scale. Routine works may pro- ceed within weeks under standing approvals. Major substations typically require one to three years for planning approval, depending on complexity and community engagement requirements. 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities The conditions imposed on distribution facility approvals are broadly consistent with those for gen- eration and transmission (see sections 3.3 Approv- als to Construct and Operate Generation Facilities and 4.3 Terms and Conditions Imposed on Approv- als to Construct and Operate a Transmission Line and Associated Facilities ), scaled to reflect the more localised nature of distribution infrastructure. Typical conditions include: • noise limits for transformers and substations, par- ticularly where located near residential areas; • visual amenity requirements, including landscap- ing, screening and building design standards for substations; • vegetation management obligations for overhead line corridors; • stormwater management and contamination pre- vention measures during construction; and
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